December 2nd, 2011 
Hotel Maury 
These airlines are vying for customers against the higher priced airlines.
The contest over customers began during the 1970′s when deregulation was introduced. With the adoption of new policies and practices, the flight industry was forced to adjust to the rigors of competition.
Deregulation and Lower Airfares
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Prior to the policy of deregulation in the airline industry of the United States, the price of tickets and the routes that airlines could fly was limited. But without limitations on pricing and routes, competition between the airlines began to develop.
Cheap Flights and Bargains
Airlines that specialized in providing bargain-priced airfares and high quality flights began to recognize a new market. Customers who appreciated the convenience and speed of air travel were willing to compromise some conveniences to save money.
The bargain travel airlines recognized a new type of customer who was focused on arriving quickly at a destination at the cheapest possible price. Such customers didn’t require first-class seating or extra comforts.
Customer Satisfaction
Such customers were satisfied to arrive quickly and safely at their destination. They were willing to travel without extra luxuries if the lack of amenities made air travel affordable. The bargain price airlines recognized a growing market in serving these customers.
Cheap Flights, Lower Prices, and Increased Competition
The other higher-priced airlines with traditional airline practices began to notice the growing market of customers responding to low airfares.
The airlines maintained their traditional first-class and economy class seating distinctions but noticed that the bargain price airlines were growing and prospering. The traditional airlines feared that they were becoming outmoded and old-fashioned.
Copying the Success of Low Prices
The traditional airlines responded by copying the successful strategies of the bargain airlines. As a result, all of the airlines began lowering prices. The traveler who had to make an unexpected emergency trip could now afford to travel by plane.
Cheap flights enabled individuals who wanted to visit relatives or who wanted go on vacation to make the trip via air travel. Airplane travel was no longer limited to emergencies and business travel.
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Also air travel was no longer limited to the financially well-off. As the economy class expanded, it provided a greater source of revenue in the flight industry. The first-class travelers were still important but they comprised a much smaller market.
Airline Travel for Everyone
Deregulation and competition made air travel for the public a possibility. As the airlines responded to public demand the price of air travel continued to fall. The airlines were engaged in a struggle for passengers.
The passengers benefited as they were the valuable commodity that determined the success or failure of the industry. As the traditional airlines witnessed the growth of the new low-budget airlines, they realized that they had to modernize strategies and practices.
Appealing to Economy Air Travel
The traditional airlines had to adopt a new approach while maintaining their appeal to business and first class travelers. The traditional airlines began offering cheap flights to appeal more to economy-class travelers.
The airlines used cheap flights to appeal to consumers searching for low airfares and to increase their profits by attracting more customers. The popularity of the cheap flights offered by the other airlines and the subsequent success forced a change in the industry.
The flight industry has expanded to accommodate the demands of the newly recognized market that wants affordable air travel. The popularity of affordable airline travel has affected the entire industry and has inspired modernization and innovative thinking.
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